For the past 30-35 years, several strategies and stratagems for improving the performance of organizations have emerged.  I’ve been exposed to; The Baldrige Criteria, Re-Engineering, Balanced Scorecard, Lean, Six Sigma … and many others.  Affordability is a common sense strategy focused on Value, Customer and Cost for continuous improvement.  It coincides, and operates well, within the constructs of the other strategies mentioned.

By focusing on Value, one can define and refine the purpose, worth and reason for the organization.

By focusing on Customer, one can determine and provide the required products and services.

By focusing on Cost, one can manage the expense of providing the products and services, as well as provide an acceptable price (the customer’s cost) that is competitive in the marketplace.

Value and Customer tells you what you must do to provide products and services.  It determines what the features and functions should be, delivered at what speed, with what quality and against what competition.

Value and Cost tells you how you must do it to stay in business.  It provides a view of the expense and spend of the current condition, and focuses the organization on what rate and amount is applied to the value-add, the value added support and the non-value add.  It allows for decisions to be made proactively for managing cash flow.

Customer and Cost sets the primary bar for being competitive.  It provides insight into where and how to work on providing a product and service that is available at a competitive price with competitive maintenance and sustainment costs.

The Triple Aim of Affordability is not one or two dimension, but all three.

Paul